Intestacy Flashcards
In what two situations will the rules of intestacy apply?
- Deceased died without making a will, or at least a valid will
- Deceased’s will does not dispose of all of their property
For a spouse to receive their beneficial entitlement, for how long must they survive the deceased?
28 days
What is the spouse’s entitlement where there are no issue, i.e. children?
The entire estate.
What are the spouse’s three entitlements where there are issue?
Personal chattels
£322,000 statutory legacy free of tax and costs plus interest from death until payment (change took effect on 26 July 2023).
Half of the residuary estate absolutely (it’s held on trust for the spouse or civil partner). The other half is HELD FOR THE ISSUE ON THE STATUTORY TRUSTS.
What is a spouse with issue’s other option with regard to the matrimonial home?
They can opt to take the matrimonial home (or deceased’s interest in it if they were tenants in common) in satisfaction their entitlement to the chattels, 322k, half the residue, and the children will take the residue (after IHT).
They can exercise this right **IF THEY LIVE IN THE PROPERTY. **
If the property is worth more than the entitlement, the spouse must pay this equality money to the estate.
What is the list of eight beneficiaries who will take intestate property if there is no spouse, and how is this dealt with?
- Issue of the intestate on statutory trusts (contingent upon attaining the age of 18 or marrying or forming a civil partnership)
- Parents (equally if both alive)
- Full brothers or sisters on statutory trusts
- Half brothers and sisters on statutory trusts
- Grandparents (equally if both alive)
- Full uncles and aunts on statutory trusts
- Half uncles and aunts on statutory trusts
- The Crown as bona vacantia
How will members of a class of beneficiaries take their share?
Equal shares.
What does on statutory trusts mean?
They determine the membership of the class of beneficiaries, and the terms on which they take.
(a) primary beneficiaries are children
(b) if any child of the intestate predeceaded the intestate, any children of the deceased child take the share equally between them (contingent upon 18 or marriage/civil partnership).
Each branch of the familu receives an equal share.
What happens if a potential beneficiary (i.e. a beneficiary with a contingent interest) who was living at the intestate’s death, dies before their interest vests, but they have no issue?
The estate will be administered as if that beneficiary has never existed
How are adopted children treated?
Any contingent interest which an adopted person had immediately before the adoption in the estate of a deceased natural parent is preserved. *BUT the exception is limited to parents, so an adopted child will lose a contingent entitlemtn to the estate of other relatives. *
Why do life assurance policies not pass under intestacy?
Life assurance policies are held on trust for or assigned to beneficiaries of the policy
Illegitimate children:
Although the intestacy rules apply whether or not an individual’s parents were married, what does the law presume if a person dies intestate and their parents were never married?
The law presumes that the father has predeceased the intestate child, unless there is evidence to the contrary or the father is on the birth certificate.
This presumption avoids the necessity for the PRs to make enquiries abotu the father where he’s unknown.
